3 Things Landlords Should Avoid To Mitigate Rent Loss
1. Don’t wait. Often during the course of the tenancy, the tenant falls behind in rent or is a habitual offender and fails to pay rent in a timely manner. You as the landlord hope that it will come any day or the next week, as promised. If the tenant is behind in rental payments, the landlord should start a legal proceeding to evict immediately. In most circumstances waiting any longer is almost always detrimental to the landlord. This is because the law requires that adequate notice must be provided to the tenant prior to evicting them, which causes further delays in evicting the nonpaying tenant. The landlord continues to loose time and additional rent.
2. Register as a multiple dwelling. If you are in New York City and have a structure with three or more residential units you must register it as a multiple dwelling. This is a prerequisite to renting the premises and is a defense to collection of rent. Therefore the tenant does not have to pay you rent for the period it is not registered as a multiple dwelling. Thus prior to taking the tenant to court for nonpayment of rent, be careful and confirm that you are registered as a multiple dwelling.
3. Apply for the warrant immediately. You take the tenant to court to evict them and you settle on a certain date as to when the tenant will vacate and you will get possession of your premises. What happens if they don’t leave on the promised date? Apply for the warrant of eviction immediately after the agreement is executed, consequently you are ready and armed to commence the process to evict them if they don’t leave as agreed. Application for the warrant, post agreement, can take up to several weeks and tacks on to the time already spent in court. Hence the landlord still does not have possession of the premises and is not receiving any rent.
If you want to discuss your particular facts and determine what the best way to proceed is, give us a call.